2024 -- S 2349 | |
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LC004781 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
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A N A C T | |
RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND HOUSING | |
AND MORTGAGE FINANCE CORPORATION | |
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Introduced By: Senators Paolino, E Morgan, Quezada, Pearson, Picard, Acosta, Ciccone, | |
Date Introduced: February 12, 2024 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Chapter 42-55 of the General Laws entitled "Rhode Island Housing and |
2 | Mortgage Finance Corporation" is hereby amended by adding thereto the following section: |
3 | 42-55-31. Revolving fund to assist first-time homebuyers and veterans. |
4 | (a) There is created, as a separate fund within the treasury, the first-time homebuyers and |
5 | veterans revolving fund (the "revolving fund"). The purpose of this revolving fund is to provide |
6 | assistance to first-time homebuyers and veterans who are buying a home, through a revolving fund. |
7 | The revolving fund shall assist these homebuyers in acquiring sufficient funds for an initial down |
8 | payment on a home in Rhode Island, by providing grants. The revolving fund shall consist of any |
9 | sums that the state may from time to time appropriate, as well as money received from donations, |
10 | gifts, bequests, or otherwise from any public or private source, which money is intended to assist |
11 | with promoting home purchases for first-time homebuyers and veterans. The general assembly shall |
12 | authorize an appropriation of thirty million dollars ($30,000,000) to provide initial funding to |
13 | establish this revolving fund. |
14 | (b) The treasurer shall contract with the Rhode Island housing and mortgage finance |
15 | corporation (hereinafter sometimes referred to as "RI housing") for the administration and |
16 | disbursement of funds. The Rhode Island housing and mortgage finance corporation shall adopt |
17 | rules and regulations in conjunction with the office of veterans affairs within the department of |
18 | human services as well as with appropriate community groups consistent with the purposes of this |
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1 | section and chapter 35 of title 42 ("administrative procedures"), which provide for the orderly and |
2 | equitable disbursement and repayment of funds. |
3 | (c) Funds placed in the revolving fund shall be made available as follows: |
4 | (1) To make grants to a first-time homebuyer or a veteran purchasing a single-family home |
5 | or condominium in Rhode Island; |
6 | (2) The maximum price on a home purchase for which a grant may be issued from the |
7 | revolving fund shall be the median single-family house price on the market in Rhode Island as |
8 | determined by the Rhode Island Realtors Association or any successor organization; |
9 | (3) To be eligible for a grant from the revolving fund, a prospective purchaser shall: |
10 | (i) Have a minimum credit score of at least six hundred twenty (620); |
11 | (ii) As part of the application process, complete a homebuyer education course, available |
12 | in person or online through RI housing; |
13 | (iii) Obtain a RI housing-funded first-mortgage through a participating lender or the RI |
14 | housing Loan Center; and |
15 | (iv) Occupy the home as their primary residence during the period of the loan repayment. |
16 | (d) The revolving fund shall provide a dollar-for-dollar match to be used as a down- |
17 | payment up to forty thousand dollars ($40,000). |
18 | (e) In addition, applicants who qualify for a grant from the revolving fund shall also be |
19 | eligible for a loan from RI housing or its affiliates at a special rate of interest which rate is one |
20 | percent (1%) less than any other loan RI housing is offering to buyers who are not first-time home |
21 | purchasers or veterans. This reduced rate shall remain on the loan until the loan is refinanced, the |
22 | real property is resold, or the loan is repaid in full. This reduced interest rate shall not apply to a |
23 | loan issued or authorized by RI housing or its affiliates which has an interest rate of four percent |
24 | (4%) or less. |
25 | (f) As used herein, the term "veteran" means a person who served on active duty with the |
26 | U.S. Army, Air Force, Navy, Marine Corps, or Coast Guard, for a minimum of one hundred eighty |
27 | (180) days and who was discharged or released under conditions other than dishonorable. |
28 | Reservists or members of the National Guard called to federal active duty (for other than training) |
29 | or disabled from a disease or injury incurred or aggravated in the line of duty or while in training |
30 | status also qualify as a veteran pursuant to 38 C.F.R. part 74. |
31 | SECTION 2. This act shall take effect on July 1, 2024. |
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LC004781 | |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO STATE AFFAIRS AND GOVERNMENT -- RHODE ISLAND HOUSING | |
AND MORTGAGE FINANCE CORPORATION | |
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1 | This act would establish a revolving fund to assist first-time homebuyers and veterans to |
2 | purchase a home in Rhode Island by issuing grants of up to forty thousand dollars ($40,000). The |
3 | revolving fund would be administered by the Rhode Island housing and mortgage finance |
4 | corporation. This act would also authorize the Rhode Island housing and mortgage finance |
5 | corporation to issue low interest loans to applicants who qualify for the grants. The act would also |
6 | provide for an initial appropriation of thirty million dollars ($30,000,000) to establish the revolving |
7 | fund. |
8 | This act would take effect on July 1, 2024. |
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